Multiple$-$Product Break$-$even, Break$-$Even Sales Revenue

Andrews Sporting Goods, Inc., produces and sells children's softball mitts: vinyl mitts and basic leather mitts. Last year, Andrews sold $24,000$ vinyl mitts and $12,000$ leather mitts. Information on the two products is as follows:

Line Item DescriptionVinyl MittsLeather MittsPrice$$10$$$16$Variable cost per unit$610$

Total fixed cost is $$87,000.$

Suppose that in the coming year, the company plans to produce an autographed mitt. The company estimates that $6,000$ autographed mitts can be sold at a price of $$22$ and a variable cost per unit of $$10.$ Total fixed cost must be increased by $$29,000($making total fixed cost $$116,000).$ Assume that anticipated sales of the other products, as well as their prices and variable costs, remain the same. $1.$ What is the sales mix of vinyl mitts, leather mitts, and autographed mitts?

$2$:$1$:$42$:$4$:$11$:$1$:$43$:$1$:$24$:$2$:$14$:$2$:$1$

$2.$Compute the break$-$even quantity of each product. $($Round break$-$even packages to four significant digits and break$-$even units to the nearest whole unit.$)$

Line Item DescriptionAnswerBreak$-$Even Vinyl Mittsfill in the blank $2$ of $7$ unitsBreak$-$Even Leather Mittsfill in the blank $3$ of $7$ unitsBreak$-$Even Autographed Mittsfill in the blank $4$ of $7$ units. $3$a$.$Prepare an income statement for Andrews Sporting Goods, Inc. for the coming year. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break$-$even sales revenue. $($Note: Round the contribution margin ratio to the nearest whole percent; round the break$-$even sales revenue to the nearest dollar.$)$

Line Item DescriptionAnswerOverall contribution margin ratiofill in the blank $5$ of $7\%$Overall break$-$even sales revenuefill in the blank $6$ of $7$$ $$

$4.$ Compute the margin of safety for the coming year in sales dollars.

fill in the blank $7$ of $7$$